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Addis Ababa University Libraries Electronic Thesis and Dissertations: AAU-ETD! >
Faculty of Business and Economics >
Thesis - Economics >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/123456789/1028
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| Title: | HOUSEHOLD DEMAND FOR IMPROVED SANITATION SERVICES: A CONTINGENT VALUATION STUDY ON ADDIS ABABA, ETHIOPIA |
| Authors: | Biruk, Gezahegne |
| Advisors: | Dr. Assefa Admassie |
| Keywords: | Willingness-to-pay
improved sanitation service
Heckman two-step estimator
contingent valuation method
Addis Ababa
Ethiopia |
| Copyright: | 2003 |
| Date Added: | 9-May-2008 |
| Publisher: | Addis Ababa University |
| Abstract: | As any developing country, lack of adequate infrastructure provision is an enormous problem in
Ethiopia. When we see the case of Addis Ababa, the current coverage of sanitation service is very
low. It is this very fact that has made the government of Ethiopia to extend a concerted effort to
improve the condition. In doing so, the government has stated that, the policy for increasing the
coverage as well as the proper use of any sustainability of the service requires implementation of a
cost recovery system. But this requires information on people’s preferences and WTP for the
proposed improvement.
Therefore, the paper examined the determinants of willingness-to-pay for improved sanitation
service and investigates the possibility of cost recovery policy directions using the contingent
valuation method. For the three suggested improvements (WTP for sewer connection, WTP for
improved sludge disposal and WTP for public toilets) a face-to-face personal interview using
bidding game elicitation technique on 440 households was conducted. The Heckman two-step
estimator used for the empirical analysis revealed that income, education, family size and age are
factors, which consistently affect the decisions whether or not one is willing to pay and the
willingness to pay amount for the three WTP scenarios. In matching demand and supply, for the
two suggested improvements (WTP for sewer system and WTP for improved sludge disposal), the
mean WTP showed that consumers are not able to pay for the improvement to attain full recovery
basis. The paper has shown the need for integrated design criteria for the respective sanitation
facilities to achieve improvement in the service. |
| Description: | A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES IN PARTIAL
FULFILLMENT OF THE REQUIREMEMNT FOR THE DEGREE OF MASTER OF SCINCE IN
ECONOMIC POLICY ANALYSIS |
| URI: | http://hdl.handle.net/123456789/1028 |
| Appears in: | Thesis - Economics
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